hrm introduction+(2)

8/8/2019 Hrm Introduction+(2)

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INTRODUCTION TO HRM- schedule of lectures

1. What is an Organization and what is Management

2. Understanding Personnel Management & HRM functions

3. Comparison between Personnel Management and HRM

4. Manpower Planning and Job Analysis

5. Recruitment and Induction

6. Performance Appraisal

7. Training and Development

8. Compensation and Reward Management9. Career Planning and Succession Planning

10. Work Motivation

11. Human Resources Information System (HRIS)

12. Quality of Work Life

13. Organizational Development

14. Management of Organizational Change

15. HRM Strategies for long-term growth

16. Productivity and HRM


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Books to be Read for Human Resource Management

1. Human Resource Management- P.Subba Rao

2. Personnel Management- C. B.Mammoria3. Human Resource Management-Dessler (Prentice Hall)

4. Personnel/ Human Resource Management-DeCenzo & Robbins(PHI)

5. Human Resource Management- D.K. Bhattacharya(Excel)

6. Human Resources Management- VSP Rao (Excel)

7. Managing Human Resource-Gomez(PHI)

8. Personnel Management-Edwin Flippo

9. Human Resource Management- Bohlander & Snell

10. Organizational Development- French & Bell (For O.D.only)

11. Managing Human Resources- Monappa


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Human Resource ManagementHuman Resource Management--An OverviewAn Overview

1.WHAT IS AN ORGANIZATION?

(a) What are its features?

(b) Which is its core function?

(c ) How does this core function perform its activities?

(d) What is the essence of the core function?

(e) What resources does the core function utilize?

(f) Which resource is the most important?

(g) Does the Organization have a context? What is it?


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Human Resource Management

Main task of Management is getting things done through and with people

Main job of Management is Economic Performance:

The sub-functions of Management are:

1. Managing the Business

2. Managing Managers

3. Managing Worker and Work

4. Managing Time

Definition of Management:

Management is the process of designing and maintaining an

environment in which individuals, working together in groups,

efficiently accomplish selected aims.


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The various dimensions of Management include:

Managers carry out the functions of Planning, Organizing, Staffing,

Leading, and Controlling.

Management applies to any form of organization It applies to managers at all organizational levels

The aim of all managers is the same: to create a surplus

Managing is concerned with productivity; this implies effectiveness

and efficiency.


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MANAGEMENT FUNCTIONSMANAGEMENT FUNCTIONS

Planning function determine an organizations objectives

and establish the appropriate strategies for achieving thoseobjectives

Organizing function creates a structure of task and authority

relationships that serves this purpose

Controlling function requires three elements

(a) Established standards of performance

(b) Information that indicates deviations between actual and

the established standards

(c )Action to correct performance that does not meet the

standards


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Staffing function is the management of the human resource

including recruiting, appraising, training and developing,motivating and separating.

Leading function is the process that integrates the functions as

planning, organizing, and controlling


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Planning determines whatresults the organization will

achieve

Organizing specifies how the results will be achieved

Controlling determines whether the results are achieved

Through planning,organizing and controlling, managers

exercise leadership


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Human Resource ManagementHuman Resource Management--An OverviewAn Overview

2. A LOOK AT THE PERSONNEL MANAGEMENT

FUNCTION

(a) The definition as described by IPM

(b) The definition as described by Edwin Flippo

3. ANALYSIS OF THE PM FUNCTION

4. UNDERSTANDING HUMAN RESOURCES

FUNCTION


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Human Resource ManagementHuman Resource Management

Definition of PM- Institute of Personnel Management (IPM) 1963

Personnel Management is the responsibility of all those who

manage people, as well as being a description of the work of

those who are employed as specialists.It is that part of

management which is concerned with people at work and with

their relationships within an enterprise. Personnel Management

aims to achieve both efficiency and justice, neither of which can

be achieved without the other. It seeks to bring together and

develop into an effective organization the men and women who

make up an enterprise enabling each one to make his bestcontribution to its success as an individual and as a member of a

working group. It seeks to provide fair terms and conditions of

employment, and satisfying work for those employed.


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Definition OfPersonnel Management

Edwin Flippo

Personnel management is the planning, organizing, directing, andcontrolling of the procurement, development,compensation, integration,

maintenance, and separation of the human resources to the end that

individual, organizational, and societal objectives are accomplished.

Management functions Operative functions ObjectivesPlanning Procurement Individual

Organizing Development Organizational

Directing Compensation SocietalControlling Integration

Maintenance

Separation


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Evolution of the Personnel FunctionEvolution of the Personnel Function

1. RECRUITMENT MAN

- textile and jute mills required unskilled in large numbers- recruitment on daily basis- badli workers

- systematic records

2. LABOUR MAN

- tough person for dealing with unskilled workmen

- also their union leaders

3. INDUSTRIAL RELATIONS MAN

- dealing with union representatives

- manipulating them

- ensuring the organization needs are met


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Evolution of the Personnel functionEvolution of the Personnel function

4. LEGAL MAN

- Plethora of labour legislations

- dealing with Industrial Disputes in the various courts

- liaisoning with legal advisors and court authorities

5. WELFARE MAN

- Section-49 man

- various responsibilities laid down

-fulfilling them and satisfying the various authorities


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Personnel Mans Comprehensive ResponsibilitiesPersonnel Mans Comprehensive Responsibilities

Personnel Manager

Rec.-M Labour-M IR-M Legal-M Wlf.-M Admn.-M


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HRMHRM-- EvolutionEvolution

Period Emphasis Status Roles

1920-30 Welfare management

Paternalistic policies

Clerical Welfare Administrator,

Policeman

1940-60 Expanding the role to

Labour Welfare, I. R., &

Personnel Admn

Administr

ative

Appraiser

Advisor Mediator

Legal Advisor

1970-80 Efficiency, effectiveness

dimensions added

Emphasis on human

values, aspirations dignity,

usefulness

Develop

mental

Change agent,

Integrator

Trainer,

Educator

1990s Incremental productivity,

gains through human

assets

Proactive,

growth-

oriented

Developer, Counselor

Coach,Mentor,Problem

Solver

2000

onwards

Centrality of Role Strategic Partner in Top Mgt.


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Definition OfPersonnel Management

Torrington & Hall98

Personnel Management is workforce- centered, directed mainly at

organizations employees; finding and teaming them, arranging for them

to be paid, explaining managements expectations, justifying

managements actions, satisfying employees work-related needs, dealingwith their problems and seeking to modify management action that could

produce unwelcome employee response. Although indisputably a

management function, personnel management is never totally identified

with management interests, as it becomes ineffective when not able to

understand and articulate the aspirations and views of the workforce.


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Definition Of Human Resource Management

Torrington & Hall98

Human Resources Management is resource-centered, directed

mainly at management needs for human resources( not

necessarily employees) to be provided and deployed. Demand

rather than supply is the focus of the activity. There is greateremphasis on planning, monitoring and control, rather than

mediation. Problem- solving is undertaken with other members

of management on human resources issues rather than directly

with employees or their representatives. It is totally identified

with management interests, being a general management activity,and relatively distant from the workforce as a whole.


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Objectives of HRM-

1. To Help The Organization Reach Its Goals

2. To Employ The Skills And Abilities Of The Workplace Efficiently

3. To Provide The Organization With Well-trained And Motivated

Employees

4. To Increase To The Fullest The Employees Job Satisfaction And

Self-actualization

5. To Develop And Maintain A Quality Of Work Life

6. To Communicate HR Policies To All Employees

7. To Help Maintain Ethical Policies And Behavior


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Analysis OfPersonnel Management Function

PersonnelAdmn. Industrial Relations WelfareManpower Planning Recognition Medical

Recruitment Negotiation Crche

Induction Agreements Safety & Accident Prevn.

Probation Settlements Working Conditions

Confirmation Industrial Disputes TransportTransfer Discipline Recreation

Promotion Strikes & Lockouts Housing

Increments Productivity

Timekeeping

PayrollRecords & Stats.

Separation


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Human Resources Planning

Definitions:

1. HR planning is the process-including forecasting, developing and

controlling- by which a firm ensures that it has the right number of people

and the right kind of people at the right places at the right time doing workfor which they are economically most useful .(Geisler)

2. The HR planning process consists of forecasting and strategic planning,

and program implementation and evaluation.

Aspects include the following:

(a) The future plans, growth areas, additions/deletions ofbusiness/product/service lines

(b) The change in technology, work methods, location of plants, relocation of

people

(c) The productivity mix that is being planned

(d) The change in company systems, practices, including work culture( thephenomenon of delayerring and empowering people

(e) The proposed changes e, g, from functional to matrix structure

(f) A proper and full job profile to match the job task requirements

(g) An inventory based on HRIS to clearly indicate the existing capabilities


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Activity Flow Chart

Corporate Mission-Strategy-Structure

Planning Horizon-HRI System- Inventory Profile

Need for Defining HRP

Basis for Planning-Demand-Supply

Environment( Ext. Int.)

Methods- Judgement-Ratios

Organization Process- Approvals

Changes Needs Deployment

Redeployment/Retraining/VRS


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HUMAN RESOURCE PLANNING

JOBANALYSIS consists of three parts

Job Description

Job Specification

Job Classification

Job Evaluation

JOB DESCRIPTION- is an organized, factual statement ofthe duties and responsibilities of a specific job. It should

tell what is to be done , how it is done and why.

JOB SPECIFICATION- is a statement of the minimum

acceptable qualities necessary to perform a job properly.

JOB CLASSIFICATION- grouping of jobs on some specific

basis such as kind of work or pay.

JOB EVALUATION- is a systematic and orderly process of

determining the worth of a job in relation to other jobs.


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HUMAN RESOURCE PLANNING

The first point of HRP is to determine the Quality and Quantity of

personnel to be recruited etc.

There is a need to have a Personnel Requisition Form duly authorized

without which no hiring/placement should be done.

Terminology used is detailed below:

Position- a group of tasks assigned to an individual

Job-group of positions that are similar as to the kind and level of workOccupation-is a group of jobs that are similar as to kind of work and

are found throughout the industry or throughout the country. An

occupation is a category of work found in many firms.

n. b. One can have a Position, Job and an Occupation simultaneously

JOBANALYSIS- is the process of studying and collecting informationrelating to the operations and responsibilities of a specific job.

n.b. Job Analysis is not to be confused with Motion Study which is the

process of finding out the easiest, most effective, and most

economical way of doing it.


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Format ofPersonnel Requisition:

1. Requisition for which category e.g.Workmen/ Service StaffStaff/ Officers

2. Location of the Job/ Vacancy

3. Nature of the Vacancy-Permanent/ Temporary(months)

4. Number of Vacancies

5. Whether within sanctioned plan or not

6. Reason for Vacancy-Workload/Replacement

7. How is the vacancy sought to be filled-Transfer/Internal

promotions/Outside Recruitment

8. Job Description9. Job Specification

10. Originated/ Recommended/ Scrutinized/ Sanctioned

11. Copies to all concerned


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Human Resource Planning

Format of Job Description:

1. Job Title

2. Reporting To

3. Reporting to Job Holder

4. Overall Responsibilities

5. Main Tasks/ Accountabilities

6. Factor Analysis-situational, goals and activities

7. Resources Controlled(a) Total no. of staff- levels , categories etc (b) Annual Budget

(c) Floor Space (d )Value of Assets (e) Turnover

(f) Throughput

8. Decisions

9. Complexity- units, functions, tasks10. Contacts

11. Relation to other jobs- internal and external

12. Physical Environment


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Format Job Specification

1. Job Title

2. Job Objective

3. Main Duties

4. Reporting To ND those reporting to Job Holder

5. Qualifications (a) Educational (b) Professional

6. Experience (a) Number of years (b) Nature of Experience

7. Knowledge-specialized, general, industry etc.8. Skills required e.g. communication, computer etc.

9. Other qualities e.g. leadership etc.

10. Age Range

11. Personality

12. Relationships- Superiors,Subordinates, Peers, others13. Aptitudes or Qualities

14. Attitudes

15. Circumstances orBackground


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ROLE ANALYSIS

Job Analysis should be extended to include Role Analysis. The concept

of role is broader than that of job. A role would consist of the pattern

of expected behaviour, interactions, and sentiments for an individual

holding an assigned job.

e. g. a supervisor or boundary-spanning jobs like personnel manager or

credit officer etc.

Such roles require superior verbal skills, sensitivity to the values of theexternal personnel, and an aptitude for remembering details.

Job descriptions in two companies may look the same but the role

requirements could be substantially different e.g. Engineering Dept.

Supervisor-

(a) Democratic set-up-helping ,supporting, persuading talking freely andcheerfully, and empathetic understanding

(b) Authoritarian- aggressiveness in relation to others, insistence upon

adherence to prescribed patterns, impatience with faulty

performance, and supportive relationships with superiors rather thanwith subordinates.


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HUMAN RESOURCES PLANNING

For an understanding of the Human Resources Planning System it is

necessary to know the sub-systems which form a part of Human

Resources Management.

The sub-systems are as under:

1. Manpower Planning

2. Selection

3. Induction and Placement

4. Performance Appraisal5. Training and Development, and Career Planning

6. Compensation

7. Work and Involvement, and Quality of Work Life (QWL)

Issues involved

(a) HR strategies, systems and structure(b) Cross-functional teams, open communication system and data access

(c) Employee competency and development needs e.g customer orientn.

(d) Employee orientation towards organizational survival vis--vis

competition


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PROCESS OF JOBANALYSIS

Sources of Data

Job Analyst

EmployeeSupervisor

Job Description

TasksDuties

ResponsibilitiesJob Data

Tasks

Performance Standards

Knowledge Required

Skills Required

Experience Needed

Job Context

Duties

Equipment UsedMethods of

Collecting Data

Interviews

Observations

Records

DOT

Job SpecificationSkill Requirements

Physical Demands

Knowledge requirements

Abilities Needed

HR Functions

Recruitment

SelectionTraining & Devpt.

Performance Appraisal

Compensation Mgt.


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BASES FOR JOB DESIGN

THE JOB

For the job, including tasks,

duties,and responsibilities

to be performed

Reflected in the differenttalents,abilities, and skills of

employees

Concerns centering onefficient production

processes and work

method improvements

including human

capabilitiesand limitations

Organizational Objectives

Ergonomics Considern

Behavioural Concerns

Industrial Engineering


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FORECASTING HR REQUIREMENTS ( DemandAnalysis)

(Trying to predict future staffing needs)1. Managerial Estimates

2. Sales Projections

3. Simulations

4. Vacancy Analysis

FORECASTING HR AVAILABILITY (Supply Analysis)

( Predicting worker flows and availabilities)

1. Succession or Replacement Charts

2. Skills Inventories (use of HRIS)3. Labor Market Analysis

4. Markov Analysis (Transition Matrix)

5. Personnel Ratios


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VACANCY ANALYSIS

(Historic Departures)

Level Empl. Turn.% Expected Expected toVacancies remain

TOP MGT . 100 20% 20 80

MID MGT. 200 24% 48 152

LOW.MGT. 600 22% 132 468

SKILLED W 600 16% 96 504

ASSY WKRS 2000 12% 240 1760

TOTALS 3500 536 2964

Average turnover percentage= 536/ 3500= .1531


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Step 8

Step 7

Step 6

Step 5

Step 4

Step 3

Step 2

Step 1

Hiring Decision

Reference Checks

Medical Examination

Selection Interview

Selection Tests

Application Blank

Screening Interview

Reception

Steps in the Selection Process


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PERSONNEL RATIOS

Past experience has developed these ratios for recruiting a Cost

Accountant.

For every 12 applications received only 1 looks promising enough to

invite for an interview

Of every 5 persons interviewed, only 1 is actually offered a position in

the organizationOf every 3 job offers made,only 2 accept the position

Of every 10 new workers who begin the training program,only 9

successfully complete the program

THUS 100 APPLICATIONS MUST BE RECEIVED, so that8.33 JOB INTERVIEWS CAN BE HELD, so that

1.67 JOB OFFERS CAN BE MADE, so that

1.11 PEOPLE MUST BE TRAINED, so that WE GET

ONE NEW COST ACCOUNTANT



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(HRIS)

PERSONAL DATA

Age, Gender, Dependents, Marital status, etc.

EDUCATION & SKILLS

Degrees earned, Licenses, Certifications

Languages spoken, Special skills

Ability/ knowledge to operate specific machines/equipment/software

JOB

HISTORYJob titles held, Location in Company, Time in each position, etc

Performance appraisals, Promotions received, Training & Develpt.

MEMBERSHIPS & ACHIEVEMENTS

Professional Associations, Recognition and Notable accomplishmnts

PREFERENCES & INTERESTSCareer goals, Types of positions sought

Geographic preferences

CAPACITY FOR GROWTH

Potential for advancement, upward mobility & growth in the Co.


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INDUCTION PROGRAMMEINDUCTION PROGRAMME

1. Organizational Issues

History of company Names and titles of key executives

Employees title and department

Layout of physical facilities

Probationary period Products/services offered

Overview of production process

Company policies and rules

Disciplinary procedures

Employees handbook

Safety steps


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2. Employee Benefits

Pay scales, pay days Vacations, holidays

Rest pauses

Training avenues

Counseling

Insurance, medical, recreation, retirement benefits

3. Introductions

To supervisors

To co-workers

To trainers

To employee counselor


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4. Job Duties

Job location Job tasks

Job safety needs

Overview of jobs

Job objectives

Relationship with other jobs


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HRMHRM-- INTRODUCTIONINTRODUCTION

PERFORMANCE APPRAISAL SYSTEM

I have six honest serving men,

They taught me all I knew,Their names are What and Why and When

How and Where and Who. Rudyard Kipling

ASPECTS OF PERFORMANCE APPRAISAL

WHAT: It is an assessment about how the employee is performing on the

job. Is it as per expectations, below expectations or above expectations.

WHY is it necessary to have an appraisal systems? Two objectives are

there- what are these ?

WHEN are appraisals to be done? Once a year? Twice a year ? Or once

in two years?Is there a process involved in appraisals? WHO is to be involved and

why must they be involved?

WHERE is it to be done? In the open or behind closed doors?

HOW- Methods of Performance Appraisal


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Performance Appraisal SystemPerformance Appraisal System

PURPOSES OF APPRAISAL

1. Assessing Performance2. Increment

3. Promotion

4. Transfer

5. Training6. Development

7. Termination


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Performance Appraisal SystemPerformance Appraisal System

Types of Appraisal Systems

1. Traits appraisal

2. Targets and Traits appraisal

3. MBO

4. 360 Degree appraisal system


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PERFORMANCE APPRAISAL SYSTEMPERFORMANCE APPRAISAL SYSTEM

Other Methods of Performance Appraisal:

1. Ranking2. Person-to person comparison

3. Grading

4. Graphic scales5. Checklists

6. Forced choice description

7.B

ES-expectation scalesBOS- observation scales

8. Essay


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PERFORMANCE APPRAISALPERFORMANCE APPRAISALTRAINING OF THE RATER:

1. The halo error2. The central tendency

3. Constant errors

(a) too harsh

(b) too easy or lenient

4. Miscellaneous errors

(a) similar-to me.

(b) contrast

(c )position

(d) biases of sex, race, religion, and nationality


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TRAINING AND DEVELOPMENTTRAINING AND DEVELOPMENT

TRAINING TERMINOLOGY

Training- is a process of learning a sequence ofprogrammed behaviour. It attempts to improveperformance on the current job or prepare for an intendedjob

Development it is related to training and covers not onlyactivities which covers improvement in job performance

but also brings about growth of the personality; helpsindividuals in the progress towards maturity and self-actualization of the persons potential capacities so that

they become not only better employees but also better menand women.Training a person for a bigger job isDevelopment which would include not only specific skillsand knowledge but also personality and mental attitudes


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Training Terminology

Education is the understanding and intervention of knowledge. It

develops a rational and logical mind that can determine relationships

among pertinent variables and their character, and understanding of

basic principles and develop the capacities of analysis, synthesis and

objectivity, Usually, education is outside the purview of organizations

except of educational institutions.

Aspect Training Development

Term Short-term Long-term

Personnel Non-managers ManagersProcess Technical & Philosophical &

Mechanical Theoretical



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TRAINING AND DEVELOPMENTTRAINING AND DEVELOPMENTThe Training Process involves:

1. Identification of performance opportunities and analysis of what

caused those opportunities to exist2. Identification of alternative solutions to the opportunity and

selection of the most beneficial solution

3. Design and implementation of the solution

4. Evaluation of the results

Training provides employees with the knowledge and skills toperform more effectively, preparing them to meet the inevitablechanges that occur in their jobs

Training is an opportunity for learning

Learning means a relatively permanent change in cognition(i.e.understanding and thinking) that results from experience andthat directly affects behaviour.

Learning happens because of many factors including design andimplementation of training, the motivation and learning style of the

trainees, and the learning climate in the organization



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Learning Objectives

Skill-Based LearningCompilation

Automaticity

Cognitive Knowledge

Declarative Knowledge

Procedural Knowledge

Strategic Knowledge

Attitudinal Learning

Affect/Feelings

LEARNING

T i i d D l tT i i d D l t


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Training and DevelopmentTraining and Development

Comparing Training and Development

Learning Training DevelopmentDimensions

Who? Non-managerial Managerial

What? Technical & Theoretical

Mechanical Conceptual ideasWhy? Specific job General Knowledge

related purpose

When? Short-term Long-term



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Purpose of Training:

1. To increase Productivity2. To improve Quality

3. To improve Organizational Climate

4. To improve Health and Safety

5. Obsolescence Prevention6. Personal Growth

Responsibility for Training

1. Top Management- frames training policy

2. Personnel Dept - plans, establishes and evaluates programmes3. Supervisors - implement and apply development procedure

4. Employees - who provide feedback, revision and suggestions

Training and De elopmentTraining and De elopment


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Training and DevelopmentTraining and Development

Active Learning

1. People remember only 10% of what they read

2. 20% of what they hear

3. 30% of what they see

4. 50% of what they see and hear

5. 70% of what they say6. 90% of what they say as they perform the

task

N.B. In other words, people learn best and more by doing than by

hearing.

T i i d D l tT i i d D l t


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Training and DevelopmentTraining and DevelopmentTraining Methods and Techniques

Classification of Training Methods

On the job Demon. & Apprenticeship Other Training

examples Methods

Vestibule Simulation Classroom

Methods

Lectures Conference Associations Audiovisua

Case Study

Role-Playing

Programmed

Instruction



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Classification of Training Methods:

1. Training in the field, on- the- job

Apprenticeship

In-Plant Training

Craftsmanship Training

2. Simulating Real Life SituationsRole Playing

Business Game

In-Basket Training

3. Laboratory TrainingSensitivity Training-T-Group and L-Group

Transactional Analysis



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Classification of Training Methods(contd.)

4. Sampling Real Life

Incidents, Case Method/Case Studies

5. Individualized Training or Counselling

Practicing Specific Skills

Reading and Writing Assignments

Postal Tuition

Programmed Instruction

6. Discussion Methods

Syndicate MethodSeminars , Conferences, Colloquium, Symposium

7. The Lecture Method

CAREER PLANNING


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CAREER PLANNING

( Balancing Individual and Organizational Needs)

Organizations Needs

Strategic Operational

Current competencies Employee turnover

Future competencies Absenteeism

Market changes Talent pool

Mergers, etc. Outsourcing

Joint ventures ProductivityCAREER MANAGEMENT

Personal Professional

Age/tenure Career stage

Family concerns Education & training

Spouse employment Promotion aspirations

Mobility Performance

Outside interests Potential

Current career path

Individual Needs

CAREER PLANNING OF HR MANAGEMENT


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CAREER PLANNING OF HR MANAGEMENT

Regl.HR

Associate

HR

Associate

Reg.HR

Manager

Asst. plt.

HR mgr.

HR

Super.

Corp.HR

Manager

Asst. div

HR Dir.

Plant

HR mgr

Corp.HR

Dir.

Div.HR

Dir.

VP-HR

ALTERNATIVE CAREER MOVES


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ALTERNATIVE CAREER MOVES

PROMOTION

EXITTRANSFER

DEMOTION


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CAREER PLANNING


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(Components of Career Planning)

Organization Individual

Career Planning Career Planning

Future Needs Self Awareness: Abilities

and interests

Career Ladders Planning Goals, Life & work

Assessment of Individual Planning to Achieve Goals

Potential

Connecting Organizational Alternatives: Internal & Extl.

Needs and Individual Need to Organization

Coordination and Audit of Career ladders: Internal and

Career System & Extl. To Organization

Synthesis

Placement


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HRM STRATEGIES FOR LONGHRM STRATEGIES FOR LONG--TERMTERM GROWTHGROWTH

1. Outsourcing HR activities

2. BPO and Call Centres

3. How to balance Work with Life (QWL)

4. Making HR activities Ethical

5. Managing Diversity6. Attitude towards Unions

7. Globalization

8. Corporate Re-organizations

9. New Organizational Forms10.Changing Demographics of the Workforce

11.Changed Employee Expectations

12.Loss of Joy and Pleasure

HRM d PRODUCTIVITYHRM d PRODUCTIVITY


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HRM and PRODUCTIVITYHRM and PRODUCTIVITY

Using HRM tools for achieving Productivity:

1. Attracting the right kind of people

2. Getting them to give of their best

3. Providing them with the right Leadership

4. Creating an Organizational Culture thatencourages Learning

5. Rewarding employees for their Performance

6. Training & Developing and Growth Opportunities

7. Making efforts to Retain employees


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Job Enrichment ( contd.)


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( )

-increasing the level of difficulty and responsibility of the job

-allowing employees to retain more authority and control over work

outcomes

-providing unit and individual job performance directly to employees-adding new tasks to the jobs that require training and growth

-assigning individuals specific tasks to enable them to become experts.

The above factors enable

(a) Greater role in the decision-making process

(b) More involved in Planning, Organizing, Directing and Controlling

(c) May be accomplished by formation of teams for self-management

JE is not a solution to problems of pay or benefits dissatisfaction,or

employee security

Moreover its not that all employees are dissatisfied with mechanicalwork on the assembly line and its not that all employees seek

responsibility and challenge in their jobs as they like their minds to

wander while they work.

Employee Empowerment


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This involves granting employees power to initiate change, thereby

encouraging them to take charge of what they do.

E encourages employees to become innovators and managers of their

own work, and it involves them in their jobs in ways that give themmore control and autonomous decision-making capabilities.

E involves pushing down decision-making responsibility to those

internal and external customers.

For encouraging E the following conditions are necessary

1. Participation: Employees must be encouraged to take control of

their work tasks. Employees, in turn, must care about improving their

work process and interpersonal work relationships

2. Innovation: The environment must be receptive to people with

innovative ideas and encourage people to explore new paths and totake reasonable risks at reasonable costs. An empowered

environment is created when curiosity is as highly regarded as is

technical expertise

Employee Empowerment (contd.)


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p oyee powe e (co d.)

3.Access to information: Employees must have access to a wide range

of information. Involved individuals decide what kind of information

they need for performing their jobs

4. Accountability: E does not involve being able to do whatever you

want. Empowered employees should be held accountable for their

behaviour toward others, producing agreed-on results, achieving

credibility,and operating with a positive approach

E thrives where the culture of the organization is open and receptive tochange. Culture is created through the philosphies of senior managers

and their leadership traits and behaviour.

Effective leadership in an empowered organization is highlighted by

managers who are honest, caring, and receptive to new ideas, and who

exhibit dignity and respect for employees as partners in organizationalsuccess.

INCENTIVE SCHEMES


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In the absence of incentive schemes employees tend to only meet the

minimum performance standards.However,when incentives are

linked to output, workers will increasingly apply their knowledge and

skills to their jobs and will be encouraged to work together as a team.

Incentive Plans are grouped under three categories:

1. Individual Incentive Plans

2. Group Incentive Plans

3. Enterprise Incentive PlansIndividual Group Enterprise

1.Piecework Team compensation Profit sharing

2.Standard hour plan Scalon Plan Stock options

3.Bonuses Rucker Plan ESOPS

4.Merit pay Improshare5.Lump-sum merit pay

6.Incentive awards

7.Sales incentives

8.Incentives for professional employees

Incentive schemes (contd.)


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Generally Incentive schemes are linked with organizational objectives

both on an individual or group basis. These could be

(a) Lowering labor costs

(b) Improving customer satisfaction(c) Expand product markets

(d) Maintain high levels of productivity and quality

Advantages of Incentive Pay Programs:

1. Employee efforts focus on specific performance targets

2. Variable costs linked to achievement of results

3. Both quality and quantity parameters are to be met

4. Incentives foster teamwork and unit cohesiveness

5. Incentives are a way to distribute success6. Incentives are a way to reward or attract top performers

Successful incentive programs should be- linked to valued behaviour,fair

to employees,set challenging but achievable productivity/quality

standards with payout formulas simple and understandable

Incentive schemes( contd.)


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( )

Individual Incentive Plans:

A) Piece Work

1. Straight Piecework-for each unit produced

2. Differential Piecework if production exceeds the standard output

higher rate is paid for all the output than the rate paid to those who

do not

n.b. is applicable where the work is readily measureable;quality is

less critical;job is fairly standardized and there is a steady flow ofwork

B) Standard Hour Plan

Standard Time is the predetermined time for completing a job. If a

job which requires 5 hours is completed in 4 and-a-half hours he

would be paid his wage rate times five hours.C) Bonus

It is a payment made beyond the wage rate and provides employees

with more wages for increased effort.It is more applicable to

executive and managerial employees also to all.

Incentive schemes(contd.)


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( )

Merit Pay:

This is paid to those who have achieved some objective performance

This will serve as a pay motivator especially for top performers while

sending a message to poor-performing employees. A strategic

compensation policy must differentiate between outstanding,good

and average performance. Furthermore,granted on the basis of merit

should be distinguishable from cost-of-living or other general

increases.Only a percentage of employees will be eligible for merit

awards(7to10%).

Problems with Merit Raises:

1. Money may not be adequate to raise base pays of all employees

2. Problems of defining performance clearly3. Employees unable to distinguish merit raises to their performance

4. Performance appraisal often at odds appraiser and appraisee

5. Lack of honesty and cooperation

6. Merit pay do not motivate higher levels of management

Incentive schemes ( contd.)


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Incentive Awards and Recognition

Employers should take care to tie awards to performance and deliver

awards in awards a in a timely, sincere and specific way

Employers are now thinking of awards and employee recognition morestrategically with programs closely aligned to their business goals

Sales Incentives

Sales jobs require good deal of enthusiasm and drive in view of the

competitive nature of selling. Incentive plans must provide a source of

cooperation and trust particularly when employees are away from the

office and cannot be supervised closely and who have to exercise a high

degree of self-discipline

Sales people can be measured by the rupee value of their sales as also bytheir ability to establish new accounts,promote new products or services

and provide various forms of customer service and assistance.

It may be noted that sales performance is affected by factors beyond their

control like economic and seasonal fluctuations, sales

competition,changes in demand and nature of sales territory etc.

Incentive Schemes ( contd.)


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Types of Sales Incentive Plans

(a) Straight salary plan:Helps to devote more time to providing more

services and building up goodwill with customers without affecting

income. However, the limitation is that there is no motivation tomaximize sales effort

(b) Straight commission plan:Provides maximum incentive and is easy to

compute and understand. It may be a percentage of sales but has the

following limitations

1.Emphasis is on sales volume rather than on profits

2.Customer service after the sale is likely to be neglected

3.Earnings tend to fluctuate between good and bad business periods

4.Salespeople are tempted to grant price concessions

(c ) Combined salary and commission plan: This is widely used andthere is the 70/30 distribution reasons being:has a right mix with

advantages of both the above systems; affords greaer flexibility could

maximize company profits;can develop favourable ration of expenses

to sales and the sales force can be motivated to meet marketing goals.

Job Satisfaction


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Definition: A pleasurable or positive emotional state resulting from the

appraisal of ones job experience

From the above it can be inferred that job satisfaction is the consequence

of employees perception of how well his job provides him thosethings which are considered to be important.

Job Satisfaction has three important aspects:

1. It can be said to be an emotional response( cannot be seen) to the job

situation

2. It will be measured in terms of how well the end results match(or

meet) or exceed expectations

3. It is always referred to in terms of several related attitudes

There are various factors which affect Job Satisfaction:

(a) Pay(b) The Work

(c) Promotions

(d) Supervision

(e) Work Group

(f) Working Conditions

Job Satisfaction( contd.)


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Ways of measuring Job Satisfaction:

(a) Rating Scales

1. General rating scales

2. Popular rating scales

Minnesota Satisfaction Questionaire

Job Description Index

Porter Need Identification Questionaire

(b) Critical IncidentsThis method was popularized by Frederick Herzberg and covers

incidents in the job situation which were particularly satisfying and

dissatisfying and related to those positive and negative attitudes.

(c ) Personal Interviews

This method provides an opportunities for in-depth interaction andclarification but the interviewer could be prejudiced and the manner

of questioning and recording the information could affect the

result.Besides the method is time-consuming and expensive.

Job Satisfaction ( contd.)


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Job Satisfaction ( contd.)

(d)Action Tendencies

Here the respondents are asked on how they feel like behaving with

respect to certain aspects of their job.Impact of Job Satisfaction on WorkPerformance

There is a big debate on whether job satisfaction has a positive effect on

productivity. But employees with satisfied employees are more effective

than those with dissatisfied employees.Just as job satisfaction is a result

of work experience, organizational effectiveness can be improved byidentification of causes for high dissatisfaction.

It must be noted that there is no definite linkage between satisfaction and

productivity. In other words,satisfied workers need not be the highest

producers.

Job Satisfaction andAbsenteeism

Research has shown that there is an inverse relationship between job

satisfaction and absenteeism.When Job satisfaction is high, absenteeism.

And when satisfaction is low, absenteeism is high.When an employee

feels is not that important he tends to remain frequently absent.

Job Satisfaction (contd.)

Oth l t d i t f J b S ti f ti


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Other related impacts of Job Satisfaction

-Better mental health and physical health

-Enthusiasm to learn new job-related tasks

-Fewer on- the- job accidents and grievances-Likely to engage in pro-social behaviour- tries to help colleagues,

customers and will to be cooperative

Relationship between Job Satisfaction and Productivity, Turnover

and Absenteeism

Productivity Turnover Absenteeism

No strong

Linkage

between

JS and

productivity

A moderate

relationship

exists

between JS

and turnover

Inverse

relationship

exists

between

Absenteeism

and JS

Assignment in HRM for Management students


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Assignment in HRM for Management students

This is a group assignment consisting of 5 students

1. A pharmaceutical company which has a good market and its factoryin Mumbai is unable to expand because of Government restrictions.

2. It plans to double its turnover and profits in 3-5 years

3. It has an employee strength of 1000 employees and has selected a

factory site in Goa where a state-of-art plant is being set up.

4. It would need only 500 employees to shift to Goa and would notrequire the others

5. The task is to address all the People issues and ensure a smooth

transfer of personnel to Goa and make the factory fully operational.

6. The Top Management would be given an incentive of Rs. 2 crores forthe successful completion of the job

7. The time limit for the completion of the job basically involving the

People issues is 6 months

hrm introduction+(2)

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